[TMWNN]

>'Fascism' is a pejorative dog whistle, when people hear it they think "enemy" - because in WWII the Italian and German governments were fascist.

>In fact, fascism, as I understand it, developed as a "third way" on the European continent.

Correct.

As you wrote, we naturally associate fascism with the Nazis invading neighboring countries and committing genocide, but its behavior was aberrant. Half of Europe was fascist/right-wing authoritarian in some form between the wars, including Poland, Austria, and Hungary, none of which started a European war; Italy only started one in Ethiopia. To put another way, Hitler's extreme anti-Semitic and anti-Slav attitudes were independent of his calling himself a fascist.

Mussolini in Italy invented fascism—the bundle of sticks and everything—but the "meh" attitude Italians have about fascism today (complete with Mussolini's granddaughter's longtime political career) is because the Italian variety of totalitarianism was never anything like the Nazis or Soviet Communists in its cruelty. Italian fascism always had substantial Jewish leadership and popular support, and Mussolini imposed anti-Jewish laws in the late 1930s only after substantial pressure from Hitler—by then clearly with the whip hand in the two countries' relationship—to do so.